Oct 09
14
Another Music Download Business Model
We look at a lot of business models and occasionally find one that is so blindingly obvious that we wonder why we missed it before.
Read this item for the underlying story from Music Void.
The basic premise from German company, DigiRights Solutions, is that they act as the kind of Dunn and Bradstreet of collections for illegal downloads in that territory.
They have been presenting the business case as follows according to the Music Void article:
pockets of the copyright holders compared to the €90 per alleged
file-sharer that pays up. So, the copyright holders get 150 times more
from pursuing filesharers than from selling actual music, the company
claims. However, not everyone who receives a letter will pay up, but
DRS says that an impressive 25% of all recipients do without asking
questions. This figure is much higher than most people assumed
previously.
DRS states that it’s realistic to track and pursue about 5,000
filesharers per month per title. Considering that 25% of those people
pay the €90, then the copyright holders would have to make about
150,000 online sales. Which is equal to the number of sales that are
required for a Gold record award in Germany.”
Sounds like a great way to build a business, particularly when you consider that most of the music companies have an extremely pragmatic attitude (for that read “without shame”) with regard to collecting money for their works!